Walmart-owned Flipkart on Friday said it will acquire a majority stake in Kolkata-based Sastasundar Marketplace that owns and operates an online pharmacy and digital healthcare platform, SastaSundar.com.
While the deal size was not disclosed, Flipkart said it is foraying into the healthcare sector through the launch of Flipkart Health+.
"As part of this development, the group has signed definitive agreements to acquire a majority share in Sastasundar Marketplace which owns and operates SastaSundar.com, an online pharmacy and digital healthcare platform, as it focuses on providing consumers access to affordable and convenient healthcare," a statement said.
SastaSundar.com offers a digital healthcare and pharmacy platform supported by a network of more than 490 pharmacies.
The company is backed by investors from Japan, namely Mitsubishi Corporation and Rohto Pharmaceuticals.
Flipkart Health+ will leverage the combined strengths of the Flipkart Group, which includes its pan-India reach and technology capabilities, with SastaSundar's deep expertise to provide consumers end-to-end offerings in the health-tech ecosystem, it added.
Flipkart Health+ will endeavour to give millions of Indian consumers access to quality and affordable healthcare, starting with e-pharmacy and will add new healthcare services such as e-diagnostics and e-consultation over time, the statement said.
Flipkart Health+ will report to Ajay Veer Yadav, Senior Vice President, it added.
The consumer internet ecosystem in India is growing rapidly as consumers recognise the opportunities and convenience that digital adoption is enabling in their lives, Flipkart Senior Vice President and Head - Corporate Development Ravi Iyer said.
He added that with growing awareness and focus on health heightened by the pandemic, there is a large opportunity and demand for affordable healthcare and ancillary offerings.
"We are excited to enter this space through this investment in SastaSundar.com, a company that has established itself as a trusted partner for lakhs of consumers through genuine products, a technology-powered platform and a wide network.
“The synergies between the Flipkart Group and SatsaSundar.com, combined with our commitment to prioritize our customer's needs, will help us grow and transform online healthcare in India,” Iyer said.
SastaSundar was founded in 2013 by B L Mittal and Ravi Kant Sharma.
In a regulatory filing on the BSE, Sastasundar Ventures Ltd said Sastasundar Healthbuddy Ltd (SHBL) has entered into a share subscription and purchase agreement and a shareholders' agreement on Friday with Flipkart Health Pvt Ltd, pursuant to SHBL's divestment of its equity holding in Sastasundar Marketplace, a wholly owned subsidiary of SHBL.
“This partnership with Flipkart is a strong validation of the capabilities we have built and will accelerate SastaSundar's mission to provide affordable healthcare to all Indians in a convenient manner,” SHBL founder and CEO Ravi Kant Sharma said.
(With PTI Inputs)